EIZO NANAO CORPORATION

Financial Highlights
Eizo Nanao Corporation and Subsidiaries
Thousands of
U.S. Dollars

Millions of Yen

2009

2010

2011

2011

¥ 74,522¥ 77,525¥ 65,204$ 785,590

4,302

9,026

5,150

62,048

682

4,928

3,547

42,735

Total assets

65,62175,36977,433932,928

Total equity

50,68956,48559,210713,373

Years ended March 31:
Net sales
Operating income
Net income
As of March 31:

Per share data

Yen

Basic net income

U.S. Dollars¥ 30.47¥ 220.79¥ 158.93

70.00

50.00

50.00

Cash dividends applicable to the year

$

1.91
0.60

Note : U.S. dollar amounts are provided solely for convenience at the rate of ¥83 to US$1, the approximate exchange rate at March 31, 2011.

Net Sales

Operating Income

Net Income

Net Sales by Products

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen
Monitor for Computer use

74,522

77,525

9,026

6,472
26,008

4,928

65,204

3,547

5,150
4,302

Amusement Monitor
Other

7,517
35,12642,042
34,882

7,974
20,83736,393

682

2009

2010

2011

Total Equity

2009

2010

2011

Basic Net Income per
ShareMillions of Yen

2009

2010

2011

Total Equity per ShareYen

Yen
56,48559,210220.7950,6892,530.52

2,652.64

2,270.88
158.93

30.47

2009
1

2010

2011

2009

2010

2011

2009

2010

2011

2009

2010

2011

Independent Auditors’ Report
Eizo Nanao Corporation2

Consolidated Balance Sheets
Eizo Nanao Corporation and Subsidiaries

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2011

2010

2011

¥21,592¥18,760$260,145

2,202

2,320

26,530Trade notes

315

300

3,795

Trade accounts

12,405

15,066

149,458

Other

154

31

1,855

Allowance for doubtful receivables

(83)

(124)

(1,000)Inventories (Note 4)

13,395

11,451

161,386

Deferred tax assets (Note 8)

2,157

2,338

25,988

367

701

4,422

52,50450,843

632,579

Land (Note 5)

3,084

3,084

37,156

Buildings and structures

11,495

11,785

138,494

Machinery and equipment

3,771

3,810

45,434

Furniture and fixtures

4,194

4,219

50,530Construction in progress

41

March 31, 2011 and 2010ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 12)
Short-term investments (Notes 3 and 12)
Notes and accounts receivables (Note 12):Prepaid expenses and other current assets
Total current assets
PROPERTY, PLANT AND EQUIPMENT:

494

22,58522,898272,108(13,372)(13,092)(161,108)

9,213

9,806

111,000

Investment securities (Notes 3 and 12)

12,83011,810154,578

Goodwill

1,199

1,468

14,446

394

366

4,747

1,293

1,076

15,57815,716

14,720189,349¥77,433¥75,369$932,928

Total
Accumulated depreciation
Net property, plant and equipment
INVESTMENTS AND OTHER ASSETS:

Deferred tax assets (Note 8)
Other assets
Total investments and other assets
TOTAL

See notes to consolidated financial statements.

3

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2011

2010

2011

¥ 6,748¥ 7,195$ 81,301

1,018

1,151

12,265

Income taxes payable

1,891

2,239

22,783

Accrued expenses

2,749

2,894

33,120

416

581

5,013

12,822

14,060154,482

Liability for retirement benefits (Note 6)

2,293

2,374

27,627

Deferred tax liabilities (Note 8)

1,754

1,347

21,133

Other long-term liabilities

1,354

1,103

16,313

5,401

4,824

65,073

4,426

4,426

53,325

Capital surplus

4,314

4,314

51,976

Retained earnings

48,616

46,185585,735

(999)

(999)

(12,036)

4,235

3,862

51,024

(1)

1

(12)

(1,381)(1,304)(16,639)

59,21056,485713,373¥77,433¥75,369$932,928

LIABILITIES AND EQUITYCURRENT LIABILITIES:
Accounts payable (Note 12):Trade accounts
Other

Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:

Total long-term liabilities
COMMITMENTS AND CONTINGENT LIABILITIES(Notes 11 and 13)
EQUITY (Notes 7 and 14):
Common stock—authorized, 65,000,000 shares;
issued, 22,731,160 shares in 2011 and 2010

Treasury stock—at cost, 409,985 shares in 2011 and
409,934 shares in 2010
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Deferred (loss) gain on derivatives under hedge accounting
Foreign currency translation adjustments
Total equity
TOTAL

4

Consolidated Statements of Income
Eizo Nanao Corporation and Subsidiaries

Thousands of
U.S. Dollars(Note 1)Millions of Yen
Years Ended March 31, 2011 and 2010

2011

2010

2011

NET SALESCOST OF SALES (Note 9)
Gross profit
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Note 9)
Operating income¥65,204
46,81918,385
13,2355,150¥ 77,525
55,753
21,772
12,7469,026$785,590
564,084
221,506
159,458
62,048

233
(62)

226
(284)
(47)
(113)
(266)

2,807
(747)

OTHER INCOME (EXPENSES):Interest and dividend income
Loss on disposal of property, plant and equipment—net
Loss on impairment of land (Note 5)
Foreign exchange loss—net
Loss on valuation of investment securities
Refunds of EU customs duties (Note 10)
Other—net
Other income (expenses)—net
INCOME BEFORE INCOME TAXES

1,115
(30)
1,123
6,273

70
(414)
8,612

13,434(362)
13,53075,578

INCOME TAXES (Note 8):
Current
Deferred
Total income taxes

2,465
261
2,726

3,104
580
3,684

29,6993,144
32,843¥ 3,547¥ 4,928$ 42,735

NET INCOME

(133)

Yen

(1,602)

U.S. Dollars

Years Ended March 31, 2011 and 2010

2011

2010

2011

PER SHARE OF COMMON STOCK (Note 2.t):
Basic net income
Cash dividends applicable to the year¥158.93
50.00¥ 220.79
50.00

$

1.91
0.60

See notes to consolidated financial statements.

Consolidated Statement of Comprehensive Income
Eizo Nanao Corporation and Subsidiaries
Millions of Yen

Thousands of
U.S. Dollars(Note 1)

Year Ended March 31, 2011

2011

2011

NET INCOME¥3,547$42,735

373
(2)
(77)
294

4,494
(24)
(928)
3,542

COMPREHENSIVE INCOME (Note 16)¥3,841$46,277

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (Note 16)—
Owners of the parent¥3,841$46,277

OTHER COMPREHENSIVE INCOME (Note 16):
Unrealized gain on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustments
Total other comprehensive income

See notes to consolidated financial statements.

5Consolidated Statements of Changes in Equity
Eizo Nanao Corporation and Subsidiaries

Thousands

Millions of Yen
Accumulated Other Comprehensive Income

Years Ended March 31, 2011 and 2010

BALANCE, APRIL 1, 2009
Net income
Cash dividends, ¥55 per share
Net increase in unrealized gain
on available-for-sale securities
Net change in deferred gain onderivatives under hedge accounting
Net change in foreign currencytranslation adjustments
BALANCE, MARCH 31, 2010
Net income
Cash dividends, ¥50 per share
Net increase in unrealized gain
on available-for-sale securities
Net change in deferred gain onderivatives under hedge accounting
Net change in foreign currencytranslation adjustments
BALANCE, MARCH 31, 2011

Number of
Shares ofCommon Stock
Outstanding

CommonStockCapitalSurplusRetained
Earnings

Deferred Gain
(Loss) on
Unrealized
Foreign
Derivatives
Gain onCurrency
Treasury Available-for-Sale under Hedge Translation
Accounting Adjustments
Securities
Stock

Total
Equity22,321 ¥ 4,426 ¥ 4,314 ¥ 42,484 ¥ (999) ¥ 1,807
4,928(1,227)¥ (1,343) ¥ 50,689
4,928(1,227)

2,055

2,055
¥

22,321

4,426

4,314

46,185
3,547(1,116)

(999)

3,862

1

1

1
39

39

(1,304)56,485
3,547(1,116)

373

373
(2)

(2)
(77)

22,321 ¥ 4,426 ¥ 4,314 ¥ 48,616 ¥ (999) ¥ 4,235 ¥(77)(1) ¥ (1,381) ¥ 59,210

Thousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive Income

Years Ended March 31, 2011 and 2010

BALANCE, MARCH 31, 2010
Net income
Cash dividends, $0.60 per share
Net increase in unrealized gain on
available-for-sale securities
Net change in deferred gain onderivatives under hedge accounting
Net change in foreign currencytranslation adjustments
BALANCE, MARCH 31, 2011

CommonStockCapitalSurplusRetained
Earnings

Deferred Gain
(Loss) on
Unrealized
Foreign
Derivatives
Gain onCurrency
Treasury Available-for-Sale under Hedge Translation
Accounting Adjustments
Securities
Stock$ 53,325 $ 51,976 $556,446 $(12,036) $ 46,530 $
42,735(13,446)

12 $(15,711) $680,542
42,735(13,446)

4,494

4,494
(24)

(24)
(928)

$ 53,325 $ 51,976 $585,735 $(12,036) $ 51,024 $

Total
Equity(928)(12) $(16,639) $713,373

See notes to consolidated financial statements.

6

Consolidated Statements of Cash Flows
Eizo Nanao Corporation and Subsidiaries

Thousands of
U.S. Dollars(Note 1)Millions of Yen
Years Ended March 31, 2011 and 2010

OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of goodwill
Reversal of allowance for doubtful receivables
Loss on disposal of property, plant and equipment
Loss on impairment of land
Loss on valuation of investment securities
Changes in assets and liabilities:
Decrease (increase) in notes and accounts receivable(Increase) decrease in inventories(Decrease) increase in accounts payable(Decrease) increase in accrued expenses(Decrease) increase in liability for retirement benefits
Other—net
Total adjustments
Net cash provided by operating activities
INVESTING ACTIVITIES:
Purchases of property, plant and equipment
Proceeds from sales of short-term investments and investment securities
Purchases of short-term investments and investment securities
Payment for acquisition of business
Increase in other assets
Net cash used in investing activities
FINANCING ACTIVITIES—Dividends paid
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
ON CASH AND CASH EQUIVALENTS
NET INCREASE IN CASH AND CASH
EQUIVALENTS—(Forward)
NET INCREASE IN CASH AND CASH
EQUIVALENTS—(Forward)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR

See notes to consolidated financial statements.

7

2011

2010

2011

¥ 6,273¥ 8,612$ 75,578(2,805)
1,339
175
(39)
62

(1,262)
1,712
203
(100)
284
47
266

(33,795)
16,133
2,108
(470)
747

2,445
(2,039)
(601)
(158)
(67)
515
(1,173)
5,100(4,483)
4,805
111
387
325
139
2,434
11,04629,458(24,566)(7,241)(1,904)(807)
6,205(14,132)
61,446(506)
9,644(9,885)(34)(342)(1,123)(1,116)(1,116)(418)
11,073(11,217)
(90)
(299)
(951)
(1,228)(1,228)(6,096)116,193(119,096)(410)(4,121)(13,530)(13,446)(13,446)

(29)

5

(349)

¥ 2,832¥ 8,872$ 34,121¥ 2,832¥ 8,872$ 34,121

18,760¥21,592

9,888¥18,760

226,024$260,145

Notes to Consolidated Financial Statements
Eizo Nanao Corporation and Subsidiaries

1. BASIS OF PRESENTING CONSOLIDATEDFINANCIAL STATEMENTS
The accompanying consolidated financial statements have been preparedin accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Act and its related accounting regulations,and in conformity with accounting principles generally accepted inJapan ("Japanese GAAP"), which are different in certain respects as tothe application and disclosure requirements of International Financial
Reporting Standards.
Under Japanese GAAP, a consolidated statement of comprehensive
income is required from the fiscal year ended March 31, 2011 and has
been presented herein. Accordingly, accumulated other comprehensive
income is presented in the consolidated balance sheet and theconsolidated statement of changes in equity. Information with respect
to other comprehensive income for the year ended March 31, 2010 isdisclosed in Note16.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order topresent them in a form which is more familiar to readers outside Japan.
In addition, certain reclassifications have been made in the 2010
consolidated financial statements to conform to the classifications usedin 2011.
The consolidated financial statements are stated in Japanese yen,
the currency of the country in which EIZO NANAO CORPORATION(the "Company") is incorporated and operates. The translations ofJapanese yen amounts into U.S. dollar amounts are included solely forthe convenience of readers outside Japan and have been made at therate of ¥83 to $1, the approximate rate of exchange at March 31, 2011.
Such translations should not be construed as representations that theJapanese yen amounts could be converted into U.S. dollars at that or any
other rate.

2. S
 UMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.	Consolidation—The consolidated financial statements as of March
31, 2011 include the accounts of the Company and its 12 (13 in 2010)
subsidiaries (together, the "Group").
Under the control concept, those companies in which theCompany, directly or indirectly, is able to exercise control over
operations are fully consolidated.
All significant intercompany balances and transactions have been
eliminated in consolidation. All material unrealized profit included in
assets resulting from transactions within the Group is eliminated.
UDS Corporation, which was one of the subsidiaries of theCompany, completed liquidation proceedings in August 2010 and is
no longer a subsidiary. The results of operations of UDS Corporation
are included in the Company's consolidated statements of income
from April 1, 2010 to the closing date of liquidation.
b.	Unification of Accounting Policies Applied to Foreign
Subsidiaries for the Consolidated Financial Statements—In
May 2006, the Accounting Standards Board of Japan (the "ASBJ")
issued ASBJ Practical Issues Task Force ("PITF") No.18, "Practical
Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for the Consolidated Financial Statements." PITF No.18
prescribes (1) the accounting policies and procedures applied to aparent company and its subsidiaries for similar transactions andevents under similar circumstances should, in principle, be unified forthe preparation of the consolidated financial statements, (2) financial
statements prepared by foreign subsidiaries in accordance with either
International Financial Reporting Standards or generally accepted
accounting principles in the United States of America tentatively may

be used for the consolidation process, (3) however, the following
items should be adjusted in the consolidation process so that net
income is accounted for in accordance with Japanese GAAP, unlessthey are not material: (a) amortization of goodwill; (b) scheduled
amortization of actuarial gain or loss of pensions that has been
directly recorded in equity; (c) expensing capitalized development
costs of R&D; (d) cancellation of the fair value model of accounting
for property, plant and equipment and investment properties andincorporation of the cost model of accounting; (e) recording theprior years' effects of changes in accounting policies in the income
statement where retrospective adjustments to financial statements
have been incorporated; and (f) exclusion of minority interests fromnet income, if included.
c.	Business Combination—In October 2003, the Business Accounting
Council (the BAC) issued a Statement of Opinion, "Accountingfor Business Combinations," and in December 2005, the ASBJ
issued ASBJ Statement No.7, "Accounting Standard for Business
Divestitures," and ASBJ Guidance No.10, "Guidance for AccountingStandard for Business Combinations and Business Divestitures."
The accounting standard for business combinations allows
companies to apply the pooling-of-interests method of accounting
only when certain specific criteria are met such that the businesscombination is essentially regarded as a uniting-of-interests. For
business combinations that do not meet the uniting-of-interests
criteria, the business combination is considered to be an acquisition
and the purchase method of accounting is required. This standard
also prescribes the accounting for combinations of entities undercommon control and for joint ventures.
In December 2008, the ASBJ issued a revised accounting standard
for business combinations, ASBJ Statement No.21, "AccountingStandard for Business Combinations." Major accounting changes
under the revised accounting standard are as follows: (1) The revised
standard requires accounting for business combinations only by thepurchase method. As a result, the pooling-of-interests method of
accounting is no longer allowed. (2) The current accounting standard
accounts for the research and development costs to be charged toincome as incurred. Under the revised standard, in-process researchand development (IPR&D) costs acquired in a business combination
are capitalized as an intangible asset. (3) The previous accounting
standard provided for a bargain purchase gain (negative goodwill)
to be systematically amortized over a period not exceeding 20 years.
Under the revised standard, the acquirer recognizes the bargain
purchase gain in profit or loss immediately on the acquisition dateafter reassessing and confirming that all of the assets acquired andall of the liabilities assumed have been identified after a review ofthe procedures used in the purchase allocation. This standard wasapplicable to business combinations undertaken on or after April 1,
2010, with early adoption permitted for fiscal years beginning on orafter April 1, 2009.
d.	Cash Equivalents—Cash equivalents are short-term investmentsthat are readily convertible into cash and that are exposed toinsignificant risk of changes in value.
Cash equivalents include time deposits, certificates of deposit andcommercial paper, all of which mature or become due within threemonths of the date of acquisition.
e.	Inventories—Inventories are stated at the lower of cost,
determined by the average method for finished products and work inprogress and by the moving-average method for raw materials, or net
selling value.

8f.	Short-Term Investments and Investment Securities—Shortterm investments and investment securities are classified andaccounted for depending on management's intent. Available-forsale securities, which represent securities not classified as either
trading securities or held-to-maturity debt securities, are reported atfair value, with unrealized gains and losses, net of applicable taxes,
reported as a separate component of equity. The cost of availablefor-sale securities sold is determined based on the moving-averagemethod.
Non-marketable available-for-sale securities are stated at cost
determined by the moving-average method.
For other-than-temporary declines in fair value, investment
securities are reduced to net realizable value by a charge to income.
g.	Property, Plant and Equipment—Property, plant and equipment
are stated at cost. Depreciation of property, plant and equipment of
the Company and its domestic subsidiaries is computed substantiallyby the declining-balance method at rates based on the estimateduseful lives of the assets, while the straight-line method is applied
to buildings of the Company and its domestic subsidiaries acquired
after April 1, 1998, and all property, plant and equipment of foreignsubsidiaries. The range of useful lives is principally from 15 to 50
years for buildings and structures, from 7 to 10 years for machineryand equipment, and from 2 to 6 years for furniture and fixtures.
h.	Goodwill—Goodwill is amortized over 10 years by the straightline method. Immaterial goodwill may be charged entirely to income
at acquisition. Amortization of goodwill is ¥175 million ($2,108
thousand) and ¥203 million for the years ended March 31, 2011 and2010, respectively.
i.	Long-Lived Assets—The Group reviews its long-lived assets for
impairment whenever events or changes in circumstances indicate thecarrying amount of an asset or asset group may not be recoverable.
An impairment loss would be recognized if the carrying amount ofan asset or asset group exceeds the sum of the undiscounted future
cash flows expected to result from the continued use and eventual
disposition of the asset or asset group. The impairment loss would bemeasured as the amount by which the carrying amount of the asset
exceeds its recoverable amount, which is the higher of the discounted
cash flows from the continued use and eventual disposition of theasset or the net selling price at disposition.
j.	Retirement and Pension Plans—The Company and certain ofits domestic subsidiaries have a defined contribution pension planand unfunded retirement benefit plans. Other domestic subsidiaries
have a defined benefit pension plan and unfunded retirement benefit
plans. Certain foreign subsidiaries have either a defined contribution
plan or defined benefit plan. Additionally the Company or its
subsidiaries may add premium severance pay.
The Group accounted for the liability for retirement benefits basedon the projected benefit obligations and plan assets at the balance
sheet date.
Retirement benefits to directors and corporate auditors arerecorded at the amount which would be required if all directors andcorporate auditors retired at the balance sheet date. In June 2004,
the retirement benefit system was abolished and the amount required
to be paid at the time of the abolishment will be paid to directors andcorporate auditors upon their retirement.
k.	Asset Retirement Obligations—In March 2008, the ASBJ
published the accounting standard for asset retirement obligations,
ASBJ Statement No.18, "Accounting Standard for Asset Retirement
Obligations" and ASBJ Guidance No.21, "Guidance on Accounting

9Standard for Asset Retirement Obligations." Under this accounting
standard, an asset retirement obligation is defined as a legal
obligation imposed either by law or contract that results from theacquisition, construction, development and the normal operation ofa tangible fixed asset and is associated with the retirement of suchtangible fixed asset. The asset retirement obligation is recognized
as the sum of the discounted cash flows required for the future asset
retirement and is recorded in the period in which the obligation
is incurred if a reasonable estimate can be made. If a reasonableestimate of the asset retirement obligation cannot be made in the
period the asset retirement obligation is incurred, the liability should
be recognized when a reasonable estimate of the asset retirement
obligation can be made. Upon initial recognition of a liability for an
asset retirement obligation, an asset retirement cost is capitalized
by increasing the carrying amount of the related fixed asset by theamount of the liability. The asset retirement cost is subsequently
allocated to expense through depreciation over the remaining usefullife of the asset. Over time, the liability is accreted to its present
value each period. Any subsequent revisions to the timing or theamount of the original estimate of undiscounted cash flows arereflected as an increase or a decrease in the carrying amount of theliability and the capitalized amount of the related asset retirementcost. This standard was effective for fiscal years beginning on or after
April 1, 2010.
The Company applied this accounting standard effective April 1,
2010. The effect of this change was to decrease operating income by¥8 million ($96 thousand) and income before income taxes by ¥56
million ($675 thousand) for the year ended March 31, 2011.
l.	Research and Development Costs—Research and development
costs are charged to income as incurred.
m.	Leases—In March 2007, the ASBJ issued ASBJ Statement No.13,"Accounting Standard for Lease Transactions," which revised theprevious accounting standard for lease transactions issued in June
1993. The revised accounting standard for lease transactions iseffective for fiscal years beginning on or after April 1, 2008.
Under the previous accounting standard, finance leases that weredeemed to transfer ownership of the leased property to the lessee
were to be capitalized. However, other finance leases were permitted
to be accounted for as operating lease transactions if certain "as if
capitalized" information was disclosed in the notes to the lessee's
financial statements. The revised accounting standard requires that
all finance lease transactions should be capitalized to recognize leaseassets and lease obligations in the balance sheet. In addition, theaccounting standard permits leases which existed at the transition
date and which did not transfer ownership of the leased property to
the lessee to be accounted for as operating lease transactions.
The Company applied the revised accounting standard effective
April 1, 2008. In addition, the Company accounted for leases which
existed at the transition date and which did not transfer ownership ofthe leased property to the lessee as operating lease transactions.
All other leases are accounted for as operating leases.
n.	Bonuses to Directors—Bonuses to directors are accrued at the
year-end to which such bonuses are attributable.
o.	Software Development Contracts—In December 2007, the ASBJ
issued ASBJ Statement No.15, "Accounting Standard for Construction
Contracts," and ASBJ Guidance No.18, "Guidance on AccountingStandard for Construction Contracts."
Under this accounting standards, revenue from sales of thecustomized software and costs of development of the customized
software should be recognized by the percentage-of-completionmethod if the outcome of a development contract can be estimatedreliably. When total revenue, total costs and the stage of completionof the contract at the balance sheet date can be reliably measured,
the outcome of a development contract can be estimated reliably. If
the outcome of a development contract cannot be reliably estimated,the completed-contract method should be applied. When it isprobable that the total costs will exceed total revenue, an estimatedloss on the contract should be immediately recognized by providing
for a loss on development contracts. This standard was effective
for fiscal years on or after April 1, 2009. The Company applied theaccounting standard effective April 1, 2009.
p.	Income Taxes—The provision for income taxes is computed basedon the pretax income included in the consolidated statements ofincome. The asset and liability approach is used to recognize deferred
tax assets and liabilities for the expected future tax consequencesof temporary differences between the carrying amounts and thetax bases of assets and liabilities. Deferred taxes are measured byapplying currently-enacted tax laws to the temporary differences.
q.	Foreign Currency Transactions—All short-term and long-termmonetary receivables and payables denominated in foreign currencies
are translated into Japanese yen at the exchange rates at the balance
sheet date. The foreign exchange gains and losses from translation
are recognized in the income statement to the extent that they are
not hedged by forward exchange contracts.
r.	Foreign Currency Financial Statements—The balance sheet
accounts of the foreign subsidiaries are translated into Japanese yenat the current exchange rate as of the balance sheet date except for
equity, which is translated at the historical rate.
Differences arising from such translation were shown as "Foreign
currency translation adjustments" under accumulated othercomprehensive income in a separate component of equity.
Revenue and expense accounts of foreign subsidiaries aretranslated into yen at the average exchange rate.

herein because the Company has not issued any securities that arepotentially dilutive for the years ended March 31, 2011 and 2010.
u. New Accounting Pronouncements		Accounting Changes and Error Corrections—In December
2009, the ASBJ issued ASBJ Statement No.24, "Accounting Standard
for Accounting Changes and Error Corrections," and ASBJ Guidance
No.24, "Guidance on Accounting Standard for Accounting Changes
and Error Corrections." Accounting treatments under this standard
and guidance are as follows:(1) Changes in accounting policies	When a new accounting policy is applied with a revision of
accounting standards, the new policy is applied retrospectively
unless the revised accounting standards include specifictransitional provisions. When the revised accounting standards
include specific transitional provisions, an entity shall comply withthe specific transitional provisions.
(2) Changes in presentation	When the presentation of financial statements is changed, priorperiod financial statements are reclassified in accordance with thenew presentation.
(3) Changes in accounting estimates	A change in an accounting estimate is accounted for in the
period of the change if the change affects that period only and isaccounted for prospectively if the change affects both the periodof the change and future periods.
(4) Corrections of prior period errors
	When an error in prior period financial statements is discovered,those statements are restated.
This accounting standard and the guidance are applicable toaccounting changes and corrections of prior period errors which are
made from the beginning of the fiscal year that begins on April 1,
2011.

s.	Derivatives and Hedging Activities—The Group uses derivative
financial instruments to manage its exposures to fluctuations inforeign exchange. Foreign exchange forward contracts are utilized by
the Group to reduce foreign currency exchange risks. The Group does
not enter into derivatives for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions
are classified and accounted for as follows: (a) all derivatives arerecognized as either assets or liabilities and measured at fair value
with gains or losses on derivative transactions recognized in the
consolidated statements of income and (b) for derivatives used forhedging purposes, if the derivatives qualify for hedge accounting
because of high correlation and effectiveness between the hedging
instruments and the hedged items, the gains or losses on derivative
are deferred until maturity of the hedged transactions.
The foreign currency forward contracts applied for forecasted
transactions are measured at the fair value, but the unrealized gains
or losses are deferred until the underlying transactions are completed.
t.	Per Share Information—Basic net income per share is computedby dividing net income available to common shareholders by theweighted-average number of common shares outstanding for theperiod.
Cash dividends per share shown in the consolidated statements
of income are presented on an accrual basis, and include interim
dividends paid and year-end dividends to be approved after balance
sheet date.
Diluted net income per share of common stock is not disclosed10

3. SHORT-TERM INVESTMENTS AND INVESTMENT
SECURITIESShort-term investments and investment securities as of March 31, 2011
and 2010 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

2011

2010

2011

Short-term investments:
Debt securities
OthersTotal¥ 1,701501¥ 2,202¥ 1,820500¥ 2,320$ 20,494
6,036$ 26,530

Investment securities:
Marketable equity securities
Non-marketable equity securities
OthersTotal¥12,743
16
71¥12,830¥ 11,59016
204¥ 11,810$153,530
193855$154,578

The cost and aggregate fair value of the securities classified as availablefor-sale at March 31, 2011 and 2010 were as follows:
Millions of Yen
Unrealized
Gains

Cost

March 31, 2011
Securities classified as available-for-sale:
Equity securities
Debt securities
OthersTotal
March 31, 2010
Securities classified as available-for-sale:
Equity securities
Debt securities
OthersTotal¥5,5831,701
573¥7,857

Unrealized
Losses¥8,202¥1,042¥8,2021¥1,043

Fair
Value

¥12,743
1,701
572¥15,016¥5,108
1,820
705¥7,633

Cost

March 31, 2011
Securities classified as available-for-sale:
Equity securities$67,265
Debt securities
20,494
6,904
Others$94,663
Total¥6,978¥ 496¥6,9781¥ 497¥ 11,590
1,820
704¥ 14,114

Unrealized
Gains

Unrealized
Losses$98,819$12,554 $153,530
20,49412
6,892$12,566 $180,916$98,819

Fair
Value

4. INVENTORIESInventories at March 31, 2011 and 2010 consisted of the following:
Millions of Yen

11

No loss on impairment of long-lived assets was recognized for the year
ended March 31, 2011.
The total loss on impairment of long-lived assets at March 31, 2010
amounted to ¥47 million, which was a write-down of land for rent. This
land will be sold after the current lease expires, and thus, the recoverable
amount was measured at its net selling value.

6. RETIREMENT AND PENSION PLANS
The Company and its certain subsidiaries have severance payment plansfor employees, directors and corporate auditors.
Under most circumstances, employees terminating their employment
are entitled to retirement benefits determined based on the rate of
pay at the time of termination, years of service and certain otherfactors. Such retirement benefits are made in the form of a lump-sum
severance payment from the Company or from certain subsidiaries
and annuity payments from the Company, certain subsidiaries or atrustee. Employees of the Company or certain subsidiaries are entitledto larger payments if the termination is involuntary, by retirement at
the mandatory retirement age, by death, or by voluntary retirement at
certain specific ages prior to the mandatory retirement age.
The liability for employees' retirement benefits at March 31, 2011 and2010 consisted of the following:
Millions of Yen

Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial (loss) gain
Net liability

2011¥3,313(1,075)(51)¥2,1872010¥3,387(1,138)20¥2,269

Thousands of
U.S. Dollars

2011$39,916(12,952)(614)$26,350T he components of net periodic benefit costs for the years ended March
31, 2011 and 2010 are as follows:

Thousands of U.S. Dollars

Finished products
Work in process
Raw materials and supplies
Total

5. LONG-LIVED ASSETS

2011¥ 3,725
3,304
6,366
¥13,3952010¥ 3,019
2,909
5,523
¥11,451

Thousands of
U.S. Dollars

2011$ 44,880
39,807
76,699$161,386

Millions of Yen

Service cost
Additional retirement cost
Interest cost
Expected return on plan assets
Recognized actuarial (gain) loss
Net periodic benefit costs

2011
¥396
66
(17)
(94)
¥351

2010
¥382
153
80
(27)
68
¥656

Thousands of
U.S. Dollars

2011$4,771795(205)(1,132)$4,229	Assumptions used for the years ended March 31, 2011 and 2010 are set
forth as follows:
Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain/loss

2011
1.0%–5.3%
0.5%–3.0%
5 years2010
1.0%–5.3%
2.0%–3.5%
5 yearsT he liability for retirement benefits at March 31, 2011 and 2010 for
directors and corporate auditors is ¥106 million ($1,277 thousand),
respectively.

7. EQUITY

8. INCOME TAXES	Japanese companies are subject to the Companies Act of Japan (the"Companies Act"). The significant provisions in the Companies Act that
affect financial and accounting matters are summarized below:	a. DividendsUnder the Companies Act, companies can pay dividends at any time
during the fiscal year in addition to the year-end dividend upon
resolution at the shareholders meeting. For companies that meetcertain criteria such as (1) having a board of directors, (2) having
independent auditors, (3) having a board of corporate auditors, and(4) the term of service of the directors is prescribed as one year rather
than two years of normal term by its articles of incorporation, theboard of directors may declare dividends (except for dividends-inkind) at any time during the fiscal year if the company has prescribedso in its articles of incorporation. The Company meets all the above
criteria.
The Companies Act permits companies to distribute dividends-inkind (non-cash assets) to shareholders subject to certain limitations
and additional requirements.
Semiannual interim dividends may also be paid once a year upon
resolution by the board of directors if the articles of incorporationof the company so stipulate. The Companies Act provides certain
limitations on the amounts available for dividends or the purchase oftreasury stock. The limitation is defined as the amount available for
distribution to the shareholders, but the amount of net assets after
dividends must be maintained at no less than ¥3 million.
b.	Increases/Decreases and Transfer of Common Stock,
Reserve and Surplus
The Companies Act requires that an amount equal to 10% of
dividends must be appropriated as a legal reserve (a component ofretained earnings) or as additional paid-in capital (a component of
capital surplus) depending on the equity account charged upon thepayment of such dividends until the total of the aggregate amountof the legal reserve and additional paid-in capital equals 25% of
the amount of common stock. Under the Companies Act, the total
amount of additional paid-in capital and legal reserve may bereversed without limitation. The Companies Act also provides that
common stock, legal reserve, additional paid-in capital, other capitalsurplus and retained earnings can be transferred among the accounts
under certain conditions upon resolution of the shareholders.
c. Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury
stock and dispose of such treasury stock by resolution of the boardof directors. The amount of treasury stock purchased cannot exceed
the amount available for distribution to the shareholders, which isdetermined by specific formula.
Under the Companies Act, stock acquisition rights are presented
as a separate component of equity.
The Companies Act also provides that companies can purchaseboth treasury stock acquisition rights and treasury stock. Suchtreasury stock acquisition rights are presented as a separate
component of equity or deducted directly from stock acquisitionrights.

	The Company and its domestic subsidiaries are subject to Japanesenational and local income taxes which, in the aggregate, resulted in anormal effective statutory tax rate of approximately 40.4% for the years
ended March 31, 2011 and 2010.
The tax effects of significant temporary differences and tax loss
carryforwards which resulted in deferred tax assets and liabilities at
March 31, 2011 and 2010 are as follows:
Thousands of
U.S. Dollars

Millions of Yen

2011

2010

2011

¥ 985
833
1,286
806
2,076
(2,244)3,742¥1,085
867
941
884
2,563
(2,342)
3,998$11,867
10,036
15,494
9,711
25,012(27,036)
45,084

		 available-for-sale securities
Other
			 Total(2,927)(54)(2,981)(2,619)(45)(2,664)(35,265)(650)(35,915)

Net deferred tax assets¥ 761¥1,334$ 9,169

Deferred tax assets:
Inventories
Pension and severance costs
Tax loss carryforwards
Accrued expenses
Other
Less valuation allowance
			 Total
Deferred tax liabilities:
Unrealized gain on	Deferred tax assets and liabilities were included in the consolidatedbalance sheets as follows:
Thousands of
U.S. Dollars

Millions of Yen

2011

2010

2011

¥2,157¥2,338$25,988

Investments and other assets—
Deferred tax assets

394

366

4,747

Current liabilities—
Other current liabilities

(36)

(23)

(433)

Long-term liabilities—
Deferred tax liabilities(1,754)(1,347)(21,133)

Net deferred tax assets¥ 761¥1,334$ 9,169

Current assets—Deferred tax assets

	Reconciliations between the normal effective statutory tax rates and theactual effective tax rates reflected in the accompanying consolidated
statements of income for the years ended March 31, 2011 and 2010 are
as follows:
Normal effective statutory tax rate
Tax credit for research expenses
Increase in valuation allowance
Other—net
Actual effective tax rate

2011
40.4%
(3.4)
3.4
2.5
42.9%

2010
40.4%
(2.3)
2.3
2.4
42.8%

12

	At March 31, 2011, certain subsidiaries have tax loss carryforwards
aggregating approximately ¥3,901 million ($47,000 thousand) which
are available to be offset against taxable income of such subsidiaries infuture years. These tax loss carryforwards, if not utilized, will expire as
follows:
Year Ending March 31

2016 and thereafter

Millions of Yen

Thousands of
U.S. Dollars¥3,901$47,000

9. RESEARCH AND DEVELOPMENT COSTS
	Research and development costs charged to income were ¥5,208
million ($62,747 thousand) and ¥4,727 million for the years ended
March 31, 2011 and 2010, respectively.

10. REFUNDS OF EU CUSTOMS DUTIES	In the European Union (the "EU"), certain types of flat panel display
monitors, including our products, had been unfairly subject to customs
duties while such tariff was in violation of Chapter 2 of the General
Agreement on Tariff and Trade.
Our distributors and sales subsidiaries in the EU were primarily
responsible for such customs duties, and the Company had subsidized
50% of the customs duties paid for both of our distributors and sales
subsidiaries to sustain their price competitiveness in their markets.
Our distributors and sales subsidiaries had filed a complaint against
the tax authorities in the EU. In 2010, the tax authorities and Binding
Tariff Information concluded that such monitors were duty-free.
Therefore, the customs duties paid in the past were partially refunded
to our distributors and sales subsidiaries. Subsequently, the Company
received refunds from our distributors corresponding to the subsidies
the Company had provided. Total amount of those refunds was ¥1,115
million ($13,434 thousand), and was recorded as extraordinary profit in
the fiscal year ended March 31, 2011.

11. LEASES	The minimum rental commitments under noncancelable operatingleases at March 31, 2011 and 2010 were as follows:
Millions of Yen

Due within one year
Due after one year
			 Total

2011
¥ 78
118
¥196

2010
¥ 97
155
¥ 252Thousands of
U.S. Dollars

2011$ 9401,422$2,362

12. FINANCIAL INSTRUMENTS AND RELATEDDISCLOSURES	On March 10, 2008, the ASBJ revised ASBJ Statement No.10,"Accounting Standard for Financial Instruments," and issued ASBJ
Guidance No.19, "Guidance on Accounting Standard for Financial
Instruments and Related Disclosures." This accounting standard andthe guidance were applicable to financial instruments and related
disclosures at the end of the fiscal years ending on or after March 31,
2010. The Group applied the revised accounting standard and theguidance effective March 31, 2010.
(1) Group Policy for Financial Instruments
The Group uses financial instruments based on its capital
expenditure plan. Cash surpluses, if any, are invested in low-risk
financial assets. Derivatives are used, not for speculative purposes,
but to manage exposure to financial risks as described in (2) below.
(2)	Nature and Extent of Risks Arising from Financial
Instruments
Receivables such as trade notes and trade accounts are exposed
to customer credit risk. Although receivables in foreign currencies

13

are exposed to the risk of fluctuation in foreign currency exchange
rates, the position, net of payables in foreign currencies, is hedgedby using forward foreign currency contracts. Marketable andinvestment securities, mainly debt securities and equity instrumentsof customers and suppliers of the Group, are exposed to the risk ofmarket price fluctuations.
All payment terms of payables, such as trade accounts, arewithin one year. Although payables in foreign currencies are
exposed to the risk of fluctuation in foreign currency exchange
rates, those risks are netted against the balance of receivables
denominated in the same foreign currency as noted above.
Derivatives mainly include forward foreign currency contracts
which are used to manage exposure to risk of changes in foreign
currency exchange rates of receivables and payables. Please see
Note 13 for more detail about derivatives.
(3) Risk Management for Financial Instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty's
failure to repay or service debt according to the contractual terms.
The Group manages its credit risk from receivables on the basis ofinternal guidelines, which include monitoring of payment terms
and balances of major customers by each business administration
department to identify the default risk of customers at an earlystage. With respect to debt securities, the Group manages its
exposure to credit risk by limiting its funding to high credit rating
bonds in accordance with in its internal guidelines. Please see Note
13 for information about derivatives.
The maximum credit risk exposure of financial assets is limited
to their carrying amounts as of March 31, 2011.
Market risk management (foreign exchange risk andinterest rate risk)
Foreign currency trade receivables and payables are exposed tofluctuations in foreign currency exchange rates. Such foreignexchange risk is hedged occasionally by forward foreign currency
contracts.
Marketable and investment securities are managed bymonitoring the market values and financial position of issuers on aregular basis.
The basic principles of derivative transactions have been
approved by the Chief Financial Officer based on internal
guidelines which prescribe the authority and the limit for eachtransaction by the corporate treasury department. Reconciliationof the transaction and balances with customers is made and thetransaction data is reported to the Chief Financial Officer on amonthly basis.
Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its
contractual obligations in full on maturity dates. The Groupmanages its liquidity risk by holding adequate volumes of liquid
assets along with adequate financial planning by the corporate
treasury department.
(4) Concentration of Credit Risk
As of March 31, 2011, 33.6% of total receivables are from specificmajor customers of the Group.
(5) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted prices in
active markets. If quoted prices are not available, other rational
valuation techniques are used instead.

		(a) Fair value of financial instruments
Millions of Yen
Carrying
AmountMarch 31, 2011
Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Short-term investments andinvestment securities
		 Total
Accounts payable		 Total

Fair Value

Unrealized
Gain/Loss		¥21,592
12,874(83)
12,791
15,016¥49,399¥ 7,766¥ 7,766¥21,592

because of their short-term settlement.
Derivatives
The information of the fair value for derivatives is included in
Note 13.
(b) Carrying amount of financial instruments whose fairvalue cannot be reliably determined2011

12,791
Investments in equity instrumentsthat do not have a quoted market
price in an active market

15,016¥49,399¥ 7,766¥ 7,766

March 31, 2010
Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Short-term investments andinvestment securities
		 Total
Accounts payable		 Total

Fair Value¥18,760
15,397(124)
15,273¥18,760

14,113¥48,146¥ 8,346¥ 8,346

14,113¥48,146¥ 8,346¥ 8,346

March 31, 2011
Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Short-term investments andinvestment securities
		 Total
Accounts payable		 Total$260,145
155,108(1,000)154,108$260,145

180,916$595,169$ 93,566$ 93,566

180,916$595,169$ 93,566$ 93,566

Due in1 Yearor Less

March 31, 2011
Cash and cash equivalents
Receivables
Investment securities:
Corporate bonds
Commercial paper
Others		 Total

15,273

Fair Value

¥ 16

¥16

$193

Millions of Yen
Unrealized
Gain/Loss

Thousands of U.S. Dollars
Carrying
Amount2011

2010(6)	Maturity Analysis for Financial Assets and Securities with
Contractual Maturities

Millions of Yen
Carrying
AmountThousands of
U.S. Dollars

Millions of Yen

Unrealized
Gain/Loss

154,108

Cash and Cash Equivalents
The carrying values of cash and cash equivalents approximate
fair value because of their short maturities.
Notes and Accounts Receivables
The carrying values of notes and accounts receivables
approximate fair value, because of their short-term settlement.
Short-Term Investments and Investment Securities
The fair values of short-term investments and investment
securities are measured at the quoted market price of thestock exchange for equity instruments and at the quoted priceobtained from financial institution for certain debt instruments.
Information on the fair value for the short-term investments andinvestment securities by classification is included in Note 3.
Accounts Payable
The carrying values of accounts payable approximate fair value,

March 31, 2010
Cash and cash equivalents
Receivables
Investment securities:
Corporate bonds
Commercial paper
Others		 Total

Due after
1 Yearthrough
5 Years

Due after
5 Years
through
10 Years

Due after
10 Years¥21,588
12,874
200
1,500
511
¥36,673

¥12
¥12

¥18,756
15,397
320
1,500
517
¥36,490

¥43
¥43

¥18
¥18

¥69
¥69

Thousands of U.S. Dollars
Due in1 Yearor Less

March 31, 2011
Cash and cash equivalents
Receivables
Investment securities:
Corporate bonds
Commercial paper
Others		 Total

Due after
1 Yearthrough
5 Years

Due after
5 Years
through
10 Years

Due after
10 Years$260,096
155,108
2,410
18,072
6,157$441,843

$145
$145

14

13. DERIVATIVES	The Group enters into derivative contracts, including foreign currency
forward contracts, to hedge foreign exchange risk associated withcertain assets and liabilities denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign
currency exposures incorporated within the Group's business.
Accordingly, market risk in these derivatives is basically offset by
opposite movements in the value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited to majorinternational financial institutions, the Group does not anticipate any
losses arising from credit risk.
Derivative transactions entered into by the Group have been madein accordance with internal policies which regulate the authorizationand credit limit amount.
	Derivative Transactions to Which Hedge Accounting Is Not
AppliedNone
Derivative Transactions to Which Hedge Accounting Is Applied
Millions of Yen

Hedged Item

Contract
AmountDue after
1 YearContract
AmountFair
Value

Information Disclosures." Under the standard and guidance, an entity
is required to report financial and descriptive information about its
reportable segments. Reportable segments are operating segments
or aggregations of operating segments that meet specified criteria.
Operating segments are components of an entity about which separate
financial information is available and such information is evaluatedregularly by the chief operating decision maker in deciding how toallocate resources and in assessing performance. Generally, segment
information is required to be reported on the same basis as is usedinternally for evaluating operating segment performance and deciding
how to allocate resources to operating segments. This accounting
standard and the guidance are applicable to segment information
disclosures for the fiscal years beginning on or after April 1, 2010.
The segment information for the year ended March 31, 2010 under
the revised accounting standard is also disclosed as required.
For the Year Ended March 31, 2011
(1) Description of Reportable Segments
The Group is primarily engaged in the manufacture, development
and sale of visual display systems and related products. The Groupconsists of the single industry, and therefore, it is not required todisclose separate financial information by segment.
(2) Information about Products and Services
Millions of Yen

March 31, 2011

2011

Foreign currency
forward contracts—

Forecast

Buying U.S.$

transactions¥108¥ (1)

Sales to external customers

Monitor for
Computer Use

Amusement
Monitor

Other

Total

¥36,393¥20,837¥7,974¥65,204

Thousands of U.S. Dollars

March 31, 20102011

Foreign currency
forward contracts—

Forecast

Buying U.S.$

transactions

Monitor for
Computer Use

¥40

¥2

Hedged Item

Contract
AmountFair
Value

Foreign currency
Forecast

Buying U.S.$

transactions$1,301

Total$96,072 $785,590

Millions of Yen
2011

March 31, 2011
forward contracts—

Other$438,470 $251,048(3) Information about Geographical Areas
		 (a) Sales

Thousands of U.S. Dollars
Contract
AmountDue after
1 YearSales to external customers

Amusement
MonitorJapan

Europe¥40,759¥18,404$(12)

North America¥ 3,312

Other

Total

¥ 2,729¥65,204

Thousands of U.S. Dollars
2011	The fair value of derivative transactions is measured at the quoted priceobtained from financial institutions.
The contract or notional amounts of derivatives which are shown in
the above table do not represent the amounts exchanged by the partiesand do not measure the Group's exposure to credit or market risk.

14. SUBSEQUENT EVENT	The following appropriation of retained earnings at March 31, 2011
was approved at the Board of Directors meeting held on May 23, 2011:

Year-end cash dividends, ¥25 ($0.3) per share

Millions of Yen

Thousands of
U.S. Dollars¥558$6,723

15. SEGMENT INFORMATION	In March 2008, the ASBJ revised ASBJ Statement No.17, "AccountingStandard for Segment Information Disclosures," and issued ASBJ
Guidance No.20, "Guidance on Accounting Standard for Segment

15

Japan

Europe$491,072$221,735

North America$39,904

Other$32,879

Total$785,590

Note : S ales are classified in countries or regions based on
location of customers.
		 (b) Property, plant and equipment
The amount of property, plant and equipment which exist
in Japan exceeds 90% of the amount of property, plant andequipment in the consolidated balance sheet, and thus, there is
no requirement to disclose such information.
(4) Information about Major Customers
Sales
Name of Customers

Millions of Yen

Thousands of
U.S. Dollars

JT Japan Technicals¥ 23,465$ 282,711

7,381

88,928AVNET Technology Solutions GmbH

Related
Segment NameFor the Year Ended March 31, 2010(1) Industry Segments
The Group is primarily engaged in the manufacture, development
and sale of visual display systems and related products. Under
Japanese accounting regulations, the Group is not required todisclose industry segment information because its main industry
segment represented more than 90% of its operations.
(2) Geographical Segments
The geographical segments of the Group for the year ended March
31, 2010 are summarized as follows:
Millions of Yen
2010
Japan

Sales to customers
Interarea transfer
			 Total sales
Operating expenses
Operating income (loss)
			 Total assets

Europe¥ 66,584
4,134
70,71858,365¥ 12,353¥ 41,742¥ 8,145
779
8,924
9,938
¥ (1,014)¥ 6,414

North
America

Eliminations/
Corporate¥ 2,796
33
2,829
2,781
¥
48
¥ 1,057¥ (4,946)(4,946)(2,585)¥ (2,361)¥ 26,156

Consolidated¥ 77,525
77,52568,499¥ 9,026¥ 75,369(3) Sales to Foreign Customers
Sales to foreign customers for the year ended March 31, 2010
consisted of the following:
Millions of Yen

2010
Europe¥18,000
2,811

North America

1,928

Other
			 Total¥22,739

16. COMPREHENSIVE INCOME
	Other comprehensive income for the year ended March 31, 2010
consisted of the following:
Millions of Yen

2010
Other comprehensive income:Unrealized gain on available-for-sale securities¥2,055

Deferred gain on derivatives under hedge accounting

1

Foreign currency translation adjustments

39

			 Total other comprehensive income¥2,095	Total comprehensive income for the year ended March 31, 2010 was
the following:
Millions of Yen

2010
Total comprehensive income attributable to—
Owners of the parent
			 Total comprehensive income¥7,023¥7,02316

Corporate Data
(As of March 31, 2011)

Board of Directors andStatutory Auditors(As of October 1, 2011)

Company NameEIZO NANAO CORPORATION

Board of Directors

EstablishedMarch 1968

President and CEO
Yoshitaka Jitsumori

Capital¥4,425,745,500

Executive Vice President and CFO
Tsutomu Tanabe

Address
153 Shimokashiwano, Hakusan,
Ishikawa, 924-8566, Japan
Phone: +81-76-275-4121
Fax: +81-76-275-4125

Directors
Kazuya Maeda
Masaki Ono
Yuichi Murai
Kazuhide Shimura
Yuichi Terada

Employees on a Consolidated Basis
1,492
Business Activities
Development, design, manufacturing
and sale of display monitors andperipherals, amusement products, andimaging system software.

Statutory Auditors
Standing Corporate Auditor
Eiichi Ueno
Corporate Auditors
Shuji Taniho
Masakatsu Atarashi
Masafumi Kubo

Managing Officers
Executive Managing Officers
Kazuya Maeda
Masaki Ono
Yuichi Murai
Managing Officers
Kazuhide Shimura
Eiji Tsurumi
Muneharu Yamamoto
Toshimine Hiraki
Kazuhiko Deminami
Shuichi Arima
Hidenori Kojima
Masayuki Hashimoto17

Products
Monitors for Computer use[For General Use]

FlexScan®

[For Industrial Market]

DuraVision®

[For Medical Market]

RadiForce®

[For Air Traffic Control Market]

Raptor®

[For Graphics Arts Market]

ColorEdge®

[For Entertainment Market]

FORIS®

Amusement Monitors©SANYOBUSSAN CO., LTD.

18

Group Network(As of October 1, 2011)

Eizo Nordic AB
EIZO GmbHEIZO
EIZO NANAOEizo
AGEurope
ABTechnologies
GmbH

EIZO NANAOTECHNOLOGIES INC.

EIZO NANAO CORPORATION

Tech Source, Inc.

EIZO Display Technologies(Suzhou) Co., Ltd.
Eizo Nanao Technologies Inc.

East Coast Office

Eizo Nanao Corporation Headquarters
Overseas Group Companies
Overseas Distribution

Overseas Network
EIZO GmbH
Siemensallee 84, 76187 Karlsruhe, Germany
Phone: +49-721-20321-0 Fax: +49-721-20321-471
EIZO Technologies GmbH
Bürgermeister-Seidl-Str. 8, 82515 Wolfratshausen, Germany
Phone: +49-8171-3492-11 Fax: +49-8171-3492-16
Tech Source, Inc.
442 Northlake Blvd Altamonte Springs, FL 32701, U.S.A.
Phone: +1-407-262-7100 Fax: +1-407-339-2554
EIZO Display Technologies (Suzhou) Co., Ltd.
5B Zhongxin Science & Technology Industrial Zone 8 Zhanye
Road, Suzhou Industrial Park Suzhou 215122 PRC, China
Phone: +86-512-6252-0100 Fax:+86-512-6252-1508

Eizo Nanao Corporation
Domestic Network
Domestic Support Network

EIZO NANAO TECHNOLOGIES INC.
5710 Warland Drive Cypress, CA 90630, U.S.A.
Phone: +1-562-431-5011 Fax: +1-562-431-4811
Eizo Nordic AB
Lövängsvägen 14 194 61 Upplands Väsby, Sweden
Phone: +46-8-594 105 00 Fax: +46-8-590 91 575
EIZO NANAO AG
Moosacherstrasse 6, Au, CH-8804 Wädenswil, Switzerland
Phone: +41-0-44-782 24 40 Fax: +41-0-44-782 24 50
Domestic Network
EIZO NANAO MS CORPORATION
37-9 Re, Jike, Hakui, Ishikawa 925-8566, Japan
Phone: +81 767 22-7121 Fax: +81 767 22-6601
IREM SOFTWARE ENGINEERING INC.
4F Kandatosei Bldg.39 Higashimatsushita,
Kanda, Chiyoda, Tokyo 101-0042, Japan
Phone: +81-3-5289-3055 Fax: +81-3-5289-3056
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EIZO SUPPORT NETWORK CORPORATION
153 Shimokashiwano, Hakusan, Ishikawa 924-8566, Japan
Phone: +81 76 274-2424 Fax: +81 76 274-2416
NANAO AGENCY CORPORATION
153 Shimokashiwano, Hakusan, Ishikawa 924-8566, Japan
Phone: +81 76 274-0035 Fax: +81 76 274-0041
EIZO ENGINEERING CORPORATION
153 Shimokashiwano, Hakusan, Ishikawa 924-8566, Japan
Phone: +81 76 274-2448 Fax: +81 76 274-0041

Shareholders‘ Information(As of March 31, 2011)

Total Number of Shares Authorized
65,000,000
Number of Shares Issued
22,731,160
Shares Listed On
The first section of the Tokyo Stock Exchange
Number of Shareholders
11,754
Major Shareholders
Ichigo Trust
The Master Trust Bank of Japan, Ltd.
(Investment Trust Account)
Yasutaka Murata
Tsuneo Murata
Naoki Murata
Hiroshi Murata
Tetsu Takashima
The Hokkoku Bank, Ltd.
The Hokuriku Bank, Ltd.
NORTHERN TRUST CO. (AVFC)SUB A/C
AMERICAN CLIENTS

Number of Shares Held(Thousands)

Percentage ofShares Held (%)

1,452

6.51

1,330

5.96

1,135
1,135
1,135
902
900
664
594

5.09
5.09
5.09
4.04
4.04
2.98
2.67

554

2.48

*The percentage of shares held is calculated deducting 409,985 shares of treasury stock.

Distribution of Shares
by Type of Shareholders

Distribution of Sharesby Number of Shares

Financial Institutions
4,871,700 shares
Securities Firms
168,466 shares

Other Firms
1,856,110 shares
Foreign Companies
4,988,451 shares
Individuals and others
10,436,448 shares

Treasury Stock409,985 shares

under 100
1,414 shares
100 or more
1,417,430 shares
500 or more
592,656 shares

1,000,000 or more
6,188,520 shares
500,000 or more
3,616,980 shares

1,000 or more
1,675,546 shares
5,000 or more
468,571 shares
10,000 or more
1,741,141 shares

100,000 or more
5,339,240 shares
50,000 or more
1,689,662 shares

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EIZO NANAO CORPORATION
153 Shimokashiwano‚ Hakusan, Ishikawa 924-8566, Japan
Tel: +81-76-275-4121, Fax: +81-76-275-4125
http://www.eizo.com/